Investors hope receding inflation pressures might prompt the Fed to back off. Similar hopes earlier were dashed when chair Jerome Powell said in August that rates would stay high.
Surveys show traders expect the Fed this month to raise rates for the fifth time this year and by 0.75 percentage points, three times its usual margin. Then, traders expect the U.S. central bank to hold rates steady through the first half of 2023.
In energy markets, benchmark U.S. crude lost 7 cents to $87.71 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 99 cents to $87.78 on Monday. Brent crude, the price basis for international oil trading, shed 12 cents to $93.88 per barrel in London. It gained $1.16 the previous session to $94.
The dollar eased to 142.45 yen from Monday’s 142.73 yen. The euro rose to $1.0130 from $1.0117.